Submitted by Nancy J. LaPointe for Navigate Financial
The credit card commercials promote activities showing families racking up the debt with loved ones and claim that these moments are “priceless”. They do have one thing correct; time with our loved ones is priceless. Debt on the other hand has a tremendous price. Emotionally, and in turn physically, individuals and families are negatively affected by their debt load. At least a few times a month I sit down with someone who feels ashamed, sick, and frustrated — all related to their credit card debt load. Society and individuals are not attuned to seeing credit cards as instruments of debt, what is seen is the entitlement, the instant gratification of card use.
Using credit cards as a convenience, is just that, easy. It is easy to use and also easy to abuse. A credit card with a $5,000, $15,000, $40,000, even $500 limit does not mean you have those dollars available, it is not your money. It means the credit card companies are willing to let you go into debt to them for that dollar amount. You get to use their money and in turn you owe them what you borrowed, plus interest. You’re in debt to them and they make it so easy.
Credit card use needs to be thoughtful, with intention, and there must be a firm plan to cover that expense. Credit cards should be an item of convenience for you, not a revenue source for the credit card company. Running up debt, whether it be credit card, personal loans, etc, immediately, and over time, hinder your ability to accumulate wealth and to have options in your life.
Debt, at select times, can help you leverage other’s money for your needs by increasing your opportunity for additional funds, or if abused, can prevent the loss of revenue producing opportunities. Too often, debt is just a ball and chain that gets heavier over time. There are ways to break the pattern and take control of the situation, but repeating the same activity will not help. Make the decision to not become a revenue source for your credit card companies.
Nancy J. LaPointe, MBA, CFP®, ChFC®, CLU®, CASL®, may be reached at Navigate Financial, located at 4520 Intelco Loop SE, Suite 1D, Lacey, WA 98503. Tel (360) 628-8175 Cell (360) 402-3200 Fax (360) 236-0317 Nancy@navigatefinancialNW.com or via the website at www.navigatefinancialNW.com
*Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser.
